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Collective bargaining coverage of industry eliminates minimum wages Bonn/Dusseldorf since liberalisation by the Hartz reforms, the time working in Germany experienced a boom. Thus, it follows a development that is already long commonplace in Britain or the Netherlands. Despite this positive news the SPD holds still undeterred on their demand after an introduction of a minimum wage for the industry. Volker Kauder, Chief of the Union group holds, that already in the temporary sector there is a collective bargaining system by about 95 percent. Thus, minimum wages are superfluous.

Werner Stolz, Federal Director of the interest group of German employment agencies, contradicts Kauder. The minimum wage would affect already little people in our industry, since most of the proposed minimum wages are already employed”, so pride to the Thuringer Allgemeine Zeitung. The minimum wage would however cause that a poverty wages Bars would put forward. According to Thomas Hetz, head of the employer association of mid-sized staffing companies, a minimum wage would meet especially the temporary employment companies in East Germany that could not compete with the then may lower salaries of their customers. Then, many medium-sized companies would have to close, so Hetz, whose dressing up, especially in the new Lander is active. Labor Minister Olaf Scholz (SPD) wants to bring the necessary laws for a minimum wage in the temporary work sector on the way before the summer recess, disapproves of HR service providers. Tentative liberalisation, which were launched under red-green, should now be withdrawn.

When we have a reason for complacency just because the unemployment period of three years from 5 to 3.5 million has fallen. That can change quickly”, said Udo Nadolski, Managing Director of the Dusseldorf consulting firm Harvey Nash de. Instead of again full bodied to talk of full employment and to break the Hartz laws, the coalition should not differ rather from their timid liberalization path.” The planned regulation of temporary employment was a bad news for all low-skilled, who have found a permanent job on temporary work. After all, every fourth time workers find a place in the permanent staff of the company, to which he was previously borrowed. Nadolski next: temporary work has many advantages. It represents a flexible personnel reserve. The employer has the option, without great risk to take a potential new employee scrutiny and check whether you can not permanently bind him to the company. Temporary work is also a remedy for the shortage of skilled engineers and technicians, but also skilled workers.”